- New spending would be on top of $2.5 billion already committed
- More carmaker investments will be unveiled soon, official said
Ford Motor Co. is planning to spend about $1 billion on a new factory in Mexico less than a year after committing $2.5 billion to the country, according to a person with direct knowledge of the situation.
The U.S. automaker will announce the plant by the end of March and seeks to build it about 260 miles (420 kilometers) north of Mexico City in the state of San Luis Potosi, said the person, who wasn’t authorized to speak on the record because the plans aren’t public. Ford said in April that it would invest $2.5 billion to expand an existing factory and build a new transmission facility.
The latest Ford plant will build on a rush of investments in Mexico as global automakers take advantage of the nation’s lower labor costs, network of trade agreements and proximity to the U.S., its biggest export market. In the last two years, Bayerische Motoren Werke AG, Toyota Motor Corp. and Kia Motors Corp. have announced plans to assemble cars in the country.
Two car companies already in Mexico will soon reveal investments to build new models, Economy Minister Ildefonso Guajardo said earlier Thursday without specifying if one of them was Ford. More announcements from the auto industry may come later this year, he said.
Ford declined to comment on speculation about its investment plans, Kelli Felker, a spokeswoman for the Dearborn, Michigan-based company, said in an e-mail.